MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 11 09 12 03 04 05 10 SEC 07 BUSINESS REVIEW 06 13 01 02 116 www.miscgroup.com 117 www.miscgroup.com #deliveringProgress We provide oil and gas, renewable energy and marine solutions, supported by more than 50 years of experience and the operation of Malaysia’s largest fabrication yard. We serve a diverse client base across Malaysia and global markets, spanning offshore construction, deepwater facilities and marine repair, conversion and refurbishment, with recognised expertise in LNG carrier works and EPCIC delivery. Alongside our core activities, we are selectively expanding into renewable and new energy solutions in support of Malaysia’s sustainability agenda, while maintaining a balanced portfolio across conventional and emerging sectors. Guided by our aspiration to modernise and enhance our yard, we continue to pursue automation, digitalisation and partnerships to position MHB for future opportunities. WHAT WE DO HOW MHB CREATES VALUE We add value by serving as the execution engine for complex and schedule-critical offshore and marine works for the PETRONAS-MISC Enterprise and international energy clients. We provide integrated solutions for a wide range of offshore and onshore facilities and vessels. We also support our clients’ aspirations for sustainable energy solutions through the construction of carbon capture facilities and advanced offshore substation platforms, as well as providing fabrication services for green hydrogen facilities. Through our services, we support earnings resilience, enhance project certainty and strengthen the Group’s ability to deliver integrated energy and marine solutions. MARINE & HEAVY ENGINEERING MARINE & HEAVY ENGINEERING KEY FOCUS AREAS & RESULTS We strengthened earnings resilience through disciplined project selection, structured cost control and reliable project execution, reinforcing the Group’s earnings visibility. Resilient Core • Secured contracts for three VESTIGO wellhead platforms • Established a joint venture with the Offshore segment to form Floating Production Solutions Sdn. Bhd. (FPSSB) to undertake floater conversions • Secured frame agreements with Mitsui & Co., Ltd. to strengthen presence in the Japanese marine market • Entered into a frame agreement for offshore mooring systems with a leading mooring system specialist • Signed an MoU with Blueocean Wind for strategic collaboration in new energy projects • Improved earnings visibility • Sustained revenue streams through long-term partnerships and frame agreements • Improved access to specialised knowledge and execution capacity ESTABLISHED TARGETED PARTNERSHIPS AND FRAME AGREEMENTS • Strengthened domestic positioning while selectively pursuing international opportunities with disciplined risk management • Established targeted partnerships and frame agreements across Marine and Heavy Engineering value chains to enhance earnings visibility • VESTIGO projects tracking ahead of schedule • Kasawari CCS project tracking ahead of schedule • 20 marine vessels delivered ahead of schedule, with 18 achieving a perfect score of 10 • Record delivery of 26 LNGCs repairs in 2025 • Zero fatalities and LTIF below 0.10 • Productivity improved by 24% and yard utilisation reached 86% • Improved cost control, risk mitigation and execution predictability • Sustained profitability through disciplined delivery • Enhanced reputation for safe, timely and reliable execution PROJECT DELIVERY EXCELLENCE • Implemented Central Production System (CPS) to standardise execution and improve productivity • Strengthened project execution discipline, HSSE performance and operational excellence across the Marine and Heavy Engineering segment What We Did in 2025 Results Value Impact SP1 Profitable New Energy Business • Signed a Joint Development Agreement (JDA) with FuelCell Energy for green hydrogen • Completed the feasibility study for D-Carnation hydrogen project • Strengthened the pipeline for future projects diversification • Positioned MHB as a regional energy transition partner • Expanded long-term growth prospects STRATEGIC PARTNERSHIP • Advanced partnerships and feasibility work in green hydrogen and decarbonisation projects What We Did in 2025 Results Value Impact We are advancing selective new energy initiatives through strategic partnerships to enable disciplined participation in emerging low-carbon value chains. SP2 What We Did in 2025 Results Value Impact • Strengthened ESG performance • Enhanced stakeholder confidence • Supported the delivery of the Group’s decarbonisation roadmap • Achieved 11.3% reduction in GHG emissions intensity compared to 2016 baseline, exceeding the 2025 reduction target and on track to meet 2030 decarbonisation targets ENERGY EFFICIENCY • Implemented yard-wide energy efficiency initiatives, including LED lighting, R32 refrigerant, electrical air compressors and LNG-powered abrasive plant Decarbonisation We are embedding energy efficiency and emissions reduction into our operating model to strengthen long-term competitiveness and value creation. SP3
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